Corn futures are called steady to 1 cent lower. Overnight trade was 1/2 to 1 1/4 cents lower. We look for consolidation trade on the open from yesterday's gains. While speculative buying has been supportive and prices have moved to the high end of the recent trading range, resistance remains above the market at $2.50 on the December contract. Losses will be limited by concern about wet forecasts that could slow harvest activity over the next few weeks.



Soybean futures are called 1 to 2 cents higher. Overnight trade was 1/4 to 2 cents higher. Rain and cool weather is slowing crop maturity and some early harvest activity. Weather forecasts show some freezing temperatures in the upper Midwest over the next couple of days. Gains will be limited by the fact that the market must still digest the harvest of a large crop and deal with large old-crop stocks.



Wheat futures are called 3 to 4 cents higher. Overnight CBOT trade was 4 3/4 to 5 cents higher and the KCBT was 2 1/4 to 3 cents higher. The market is showing signs that the expected seasonal uptrend into late fall is getting back on track. Improved weekly export inspections last week and news that an Iraqi delegation will be in the U.S. soon to discuss wheat trade is a positive sign. Global supply/demand fundamentals remain bullish with further cuts in production estimates for Australia.



Cattle futures are called steady to higher. The market is expected to continue the short-covering bounce from recent losses as the cash market could stabilize this week. Packers are maintaining aggressive slaughter schedules and showlists are smaller. However, there is concern that declining boxed beef prices and poor margins will limit packer's interest unless profitability improves soon.



Lean hog futures are called lower on the open. Follow-through weakness is expected from yesterday's sharp losses. Cash markets are expected to be lower again today as pork cutouts have been lower the past four business days, dropping 90 cents on Monday.